Buying a house and moving is one of the most stressful times in anyone’s life. This is the case for first time buyers, or those already on the property ladder. Now, thanks to stamp duty, it has become the most expensive it has ever been too.
New Figures Show Rise in Moving Costs
ReallyMoving has reported new figures for moving costs. The 4% rise in higher stamp duty costs and 5% rise in conveyance fees combined have caused the increase in house moving costs.
It is estimated that the average upfront cost of moving house in the UK will cost a whopping £10,414 and in London that figure is even more horrifying at £24,585. This has caused a rise of 2%, but these figures are the highest they have ever been.
The Rise in Figures Also Affects First Time Buyers
First time buyers are also affected by a rise in figures, although not quite so severely. There has been a 2% rise in costs for first time buyers, meaning on average it would cost them approximately £1,613 to move.
Thankfully, first time buyers are exempt from stamp duty on properties up to the value of £300,000. Therefore, this 2% increase could be blamed on conveyance fees and removal fees. London’s higher house prices, however, mean that first time buyers would need to pay stamp duty. This brings a London move for a first time buyer into the region of £5,684.
Fees Are Making Moving House A Nightmare
Stamp Duty counts for 44% of the house moving costs, but 65% in London. This means almost £5,000 is spent on stamp duty, and almost £1,500 is on conveyance fees. Removal fees have also increased by 1%, meaning that almost £500 spent on just transporting your processions from home to home.
London brings further challenges for homebuyers and those wishing to move house. The costs in London are far greater than the rest of the UK, PropertyWire reports that the cost of moving house in London is on average £24,585. This figure is 2.5 times the UK average.
Location Makes a Huge Difference
The rise in stamp duty and conveyance fees in London means that relying on growth in equity to help fund a house move is not enough. It is becoming much harder for those in London wishing to move house.
However, London is not the only area which has an ecological disadvantage. The South East, East and South West are also areas in which fees are higher. The East and West Midlands are in the centre, whilst the North East and Northern Ireland are the least expensive areas in which to relocate.
Not All Fees Have Risen
PropertyWise has reported that an EPC (Energy Perfomance Certificate) has remained at £55, a Homebuyers Report has lowered by 4% and estate agent fees are also down by 1%.
The home buying market has had to become competitive and cut certain prices and costs to make up for the rises elsewhere. By being competitive in these areas, it gives homebuyers some hope that they can make advances on relocating.
It is also sensible for anyone looking to move house to make sure they shop around and compare fees where possible. Stamp Duty may be fixed, but you can compare prices for conveyance fees, removal fees and other aspects of a house move.
If you are struggling to sell your home and to make your first step on moving house, contact us at Buymypropertyforcash.com to see what we can do for you.